The two largest card networks in Vietnam - Vietnam National FinancialSwitching Joint Stock Co. (Banknetvn) and Smartlink Card Services JointStock Company (Smartlink) – will be merged under a decision signed byPrime Minister Nguyen Tan Dung on December 22, the English language newsportal VietNamNet Bridge reported.
Under the plan, on December30, Banknetvn and Smartlink will sign a merger contract and willcomplete the final procedures for the debut of the new company in thefirst quarter of 2015.
The new company will have the State Bankof Vietnam (SBV) as the largest shareholder. Its goal is to developinfrastructure for retail banking and non-cash payments in Vietnam.
Themerged card alliance is expected to help banks save resources andinfrastructure investment costs. The payment and money transfertransactions will be more convenient and faster. Customers will alsohave the opportunity to enjoy many more benefits from modern paymentmodes.
The idea of forming the unified system of payment cards inVietnam was introduced in 2003. In 2007 Banknetvn was founded by threestate-owned commercial banks - Bank for Agriculture and Development ofVietnam (Agribank), Policy Bank, and Bank for Investment and Developmentof Vietnam (BIDV).
The second card union - Smartlink – wasfounded in 2007, with the participation of the Bank for Foreign Trade ofVietnam (Vietcombank) and 15 joint-stock banks. The market then alsosaw the establishment of the third card union - Vina Smart Card JointStock Company (VNBC), which then merged with Banknetvn.
Themerger of SmartLink and Banknetvn was approved in November 2012. Theparties agreed to invite independent auditors to evaluate the assets ofthe two unions, and the task was scheduled for completion beforeDecember 12, 2012.
However, the procedure was longer thanexpected, in particular, demonstration to be granted the government’sexemption of monopoly, as the only two card alliances on the market weremerging.
The current regulations prohibit economicconcentration if the combined market share of the new merged firmsaccount for more than 50 percent of the market.
The economicconcentration (merger) only enjoys a monopoly exemption if it makes acontribution to the country’s development. The Prime Minister isauthorized to decide on the grant of monopoly exemption.-VNA
Under the plan, on December30, Banknetvn and Smartlink will sign a merger contract and willcomplete the final procedures for the debut of the new company in thefirst quarter of 2015.
The new company will have the State Bankof Vietnam (SBV) as the largest shareholder. Its goal is to developinfrastructure for retail banking and non-cash payments in Vietnam.
Themerged card alliance is expected to help banks save resources andinfrastructure investment costs. The payment and money transfertransactions will be more convenient and faster. Customers will alsohave the opportunity to enjoy many more benefits from modern paymentmodes.
The idea of forming the unified system of payment cards inVietnam was introduced in 2003. In 2007 Banknetvn was founded by threestate-owned commercial banks - Bank for Agriculture and Development ofVietnam (Agribank), Policy Bank, and Bank for Investment and Developmentof Vietnam (BIDV).
The second card union - Smartlink – wasfounded in 2007, with the participation of the Bank for Foreign Trade ofVietnam (Vietcombank) and 15 joint-stock banks. The market then alsosaw the establishment of the third card union - Vina Smart Card JointStock Company (VNBC), which then merged with Banknetvn.
Themerger of SmartLink and Banknetvn was approved in November 2012. Theparties agreed to invite independent auditors to evaluate the assets ofthe two unions, and the task was scheduled for completion beforeDecember 12, 2012.
However, the procedure was longer thanexpected, in particular, demonstration to be granted the government’sexemption of monopoly, as the only two card alliances on the market weremerging.
The current regulations prohibit economicconcentration if the combined market share of the new merged firmsaccount for more than 50 percent of the market.
The economicconcentration (merger) only enjoys a monopoly exemption if it makes acontribution to the country’s development. The Prime Minister isauthorized to decide on the grant of monopoly exemption.-VNA
